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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Hull who wrote (17607)	8/7/1998 1:43:00 PM
From: Greg Hull	Read Replies (1) \| Respond to of 29386

There is an article in the August issue of the Twin Cities Business Monthly entitled "The Explosion in Junk Equity." It refers to the private placement of convertible preferred stock by publicly held companies. It lists several companies who have made these sales this year, and who heads the list but Ancor. The article states that junk can carry two meanings. It may refer to companies whose stock is down in the dumps or are having trouble executing their business plan, or it may refer to the financing that is tilted too heavily toward the new investors at the expense of existing investors. It goes on to state that the enormous number of IPOs in recent years has increased the number of orphaned public companies. "Lacking sponsorship within the brokerage community, a company may see its stock fall into the penalty box of the 'who cares' category." Roger Jones, head of private placements at John G. Kinnard is quoted: "Properly structured, such transactions are invaluable for smaller growth companies whose stock may have stalled out, or whose current stock price doesn't reflect management's view of value. But managers must know who they are dealing with." Let's hope Mr. Snyder is astute. Greg